Student loans have available balances and credit limits??

[certifiedmommy]

Does anyone know whether it is customary to have your student loan report an available balance and credit limit? With it being reported this way, it causes my credit utilization to be 97% and that is asinine. Especially since I have 2 secured USAA CCs with a combined utilization of 0%. I called my student loan company and spoke with a supervisor who thinks this is odd also and she initiated an investigation. I've also noticed that my husband's student loans are being reported differently, his has a balance that exceeds his credit limit, even though these are installment loans. WTFudge is going on here? Anyone?

Edited August 31, 2015 by certifiedmommy

[certifiedmommy]

Apparently I didn't receive any assists on this question because it was either already addressed in another thread on this forum or no one who viewed my question knew the answer. Though I highly doubt the latter. Anyway, just in case someone else is wondering the same and happens upon this thread, I found the answer someplace else. If my understanding is correct, student loans being reported this way is correct. As the loan balance is paid down, the utilization decreases as well. Although, installment loan utilization doesn't weigh as much as revolving credit utilization. So, if you have CCs be sure to keep their utilization very low, ideally <9%. If you don't have any CCs and your student loans are reporting high utilization, it's been recommended to get a CC and keep its util. below 9% if your scores are stagnant. And of course take care of an COs, if you have any.

[Diane40]

My Student Loan started reporting with available limit and credit limit several months ago in which it never had before. Just a few days ago my SL was transferred to Mohela. Aspire just closed the account and added transferred to another lender but it lowered my score by 18 points. I'm sure it will be restored once Mohela reports the account .. it better.

[certifiedmommy]

My Student Loan started reporting with available limit and credit limit several months ago in which it never had before. Just a few days ago my SL was transferred to Mohela. Aspire just closed the account and added transferred to another lender but it lowered my score by 18 points. I'm sure it will be restored once Mohela reports the account .. it better.

I feel the same. I am still researching this but I don't believe SLs report that way when payments are deferred. Maybe once they are in repayment status they start reporting balances and limits? I've read repeatedly that they don't weigh as must as revolving accounts but ummm 18 points is pretty significant IMO. Let me know how things work out ☺️

[hodap2001]

Yes, it is customary - They will report your maximum loan amount under your Credit Limit and your outstanding principal balance as available balance - these normally do not affect your credit report or scores; therefore, there are other factors affecting your credit and not student loan debt.

[certifiedmommy]

Yes, it is customary - They will report your maximum loan amount under your Credit Limit and your outstanding principal balance as available balance - these normally do not affect your credit report or scores; therefore, there are other factors affecting your credit and not student loan debt.

 

Thanks for responding I learned this after tons of searching. It just seemed odd at first, but that was due to me being new to how credit works. And yes, there are definitely other factors that are affecting my scores, which I am tackling now.